The Private Arbitration Clause In Employment Contract is essential for organizations seeking to manage employment disputes efficiently and cost-effectively while minimizing litigation risks. This document is commonly used across the United States when establishing employment relationships and must comply with both federal legislation (including the FAA, Civil Rights Act, and ADA) and state-specific requirements. The clause typically details the scope of arbitrable disputes, arbitrator selection process, cost allocation, and procedural requirements while ensuring employee rights are protected under applicable laws.
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1. Parties: Identification of employer and employee
2. Background: Context of employment relationship and arbitration agreement
3. Definitions: Key terms used in the arbitration clause including 'Arbitration', 'Claim', 'Dispute'
4. Scope of Arbitration: Detailed description of disputes covered by the arbitration agreement and any statutory claims
5. Arbitration Procedures: Process for initiating and conducting arbitration, including notice requirements and timelines
6. Selection of Arbitrator: Process for choosing the arbitrator and required qualifications
7. Costs and Fees: Allocation of arbitration expenses between employer and employee
8. Governing Law: Specification of applicable federal and state laws governing the arbitration agreement
1. Class Action Waiver: Optional provision waiving right to participate in class or collective actions
2. Discovery Provisions: Optional detailed rules for information exchange during arbitration process
3. Confidentiality Clause: Optional provisions regarding confidentiality of arbitration proceedings and outcomes
4. Severability: Optional clause addressing the survival of remaining provisions if any part is found invalid
1. Schedule A - Arbitration Rules: Detailed procedures and rules for conducting the arbitration
2. Schedule B - Fee Schedule: Detailed breakdown of arbitration costs and fee allocation between parties
3. Schedule C - Excluded Claims: Comprehensive list of disputes and claims not subject to arbitration
4. Schedule D - Forms: Standard forms for initiating arbitration and selecting arbitrators
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